Someone took a loan from a gemach for a large amount of money and made up to pay back $500 a month. They now need to take another loan and the same gemach has agreed to give it on condition that they begin to pay back $1000 a month on the previous loan. Only if they do that will they be given this new loan that will begin payment at a different time. Is there any problem of ribis in this case?
Answer:
This will be a problem of ribbis.
One source for this is the Gemara in Makkos (2), where we find that added time for repayment is worth money. Therefore the shortened time, which comes as an exchange for the loan, means that the creditor is receiving something worth money, and this is a case of ribbis.
A still closer proof is the Gemara in Kiddushin whereby a person does Kiddushin in exchange for extending a loan, and this raises a concern of ribbis.
Best wishes.
